Hess announces multi-billion oil exploration warchest

Hess Corporation
Tug boats transport the Hess Corp. Stampede tension leg oil platform, towed from Kiewit Offshore Services Ltd., past Port Aransas, Texas, U.S., on Friday, May 5, 2017. The Stampede deepwater oil and gas field is one of the largest undeveloped fields in the Gulf of Mexico, sitting 115 miles south of Fourchon, Louisiana. Photographer: Eddie Seal/Bloomberg via Getty Images

Hess Corporation has today announced a huge oil exploration warchest of £2.2 billion.

The lionshare of the multi-billion sum will be used to explore the firm’s assets in the Bakken and Guyana.

Hess Corporation said net production is forecast to average between 270,000 and 280,000 barrels of oil equivalent per day in 2019, excluding Libya.

Bakken net production is forecast to average between 135,000 and 145,000 barrels of oil equivalent per day in 2019.

The firm’s chief executive, John Hess, said. “Our capital and exploratory expenditure program is designed to deliver strong returns, production growth and significant future free cash flow.

“As we focus spending on our high return investment opportunities, we will continue to reduce our unit costs to drive margin expansion and improve profitability.”

Greg Hill, chief operating officer, said: “In 2019, in the Bakken we plan to operate a 6 rig program, up from a 4.8 rig average in 2018; drill 170 wells, up 42 percent from 2018; and complete the transition to higher intensity plug and perf completions, which is expected to generate a significant uplift in net present value and initial production rates while also increasing the estimated ultimate recovery of oil and natural gas.”

“In Guyana, 2019 will be the peak spend year for the Liza phase 1 development, which is on track for first oil by early 2020.

“We also will begin Liza phase 2 development spending, complete the plan of development for Payara, and advance front end engineering and design work for future development phases.”

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